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Spydertrader's Jack Hershey Equities Journal
- Thread starter Spydertrader
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Quote from Spydertrader:
Final Universe Update
The following stocks has been ADDED to the Final Universe List as of
2005-08-03: ITRI NETL TALX TIE VPHM WLDA.
Current Final Universe
BCSI CKCM CMT DCAI ELOS ENER FORD HANS IIG ITRI JMDT MCRI MFLX NETL NFLX NGPS PARL RADS RTSX SNHY SOLD TALX TASR TIE TRGL UBET VDSI VPHM WLDA
- Spydertrader
Hello Spydertrader
Regarding the new additions to the FU:
ITRI NETL TIE WLDA have excellent RS values of 97+ by Stocktables yet EPS values for all 4 are in low 70's. Have you relaxed the criteria for new additions? Sorry if I missed your post regarding any changes.
Regarding JMDT:
It appears from today's notes that you do not adjust the initial 2% stop intraday. Would you consider adjusting the initial 2% stop intraday based on the HOD to lock in quick gains or do you think this would result in being stopped out of larger moves prematurely?
As always thank you for your response and your continued efforts in maintaining the high quality of this journal.
Quote from Reno:
Have you relaxed the criteria for new additions?
Over the last year, the vast majority of trades taken have resulted from equities that did not meet the 90 percentile EPS and RS rank at the time they signaled a trade. Although each, at one time, did fall within this percentile, when they triggered a trade signal, they did not. As a result, I arrived at the conclusion that cycles play a more important role in profitability than EPS and RS rank. When the number of equities in our Final Universe nears twenty, I relax the Final Universe entry criteria slightly in order to increase the number of possible trade signals. One could also achieve the same goal by reducing the average daily share volume to 150,000 or by altering the minimum and maximum share price. I chose to alter the EPS and RS settings as Jack had indicated that altering these settings, to achieve a certain number of equities in the initial sort, should not effect profitability.
Quote from Reno:
Would you consider adjusting the initial 2% stop intraday based on the HOD to lock in quick gains or do you think this would result in being stopped out of larger moves prematurely?
Using a 2% trailing stop on the first day causes in increase in the number of trades prematurely exited. Today's price action for JMDT clearly falls outside the norm, and rather than alter my strategy based on a single day's activity, I need to look at the larger picture. I could have chosen to bank half the profits when price moved 5%, or I could have chosen to exit entirely when price went flat in the afternoon. I didn't exercise either of these options when clearly the trend had changed. As a result, I see it as my error in judgement, rather than, an error inherent to the system. All things considered $170 USD is a small price to pay for the lesson the market taught me today.
Quote from Reno:
As always thank you for your response and your continued efforts in maintaining the high quality of this journal.
I thank you for your kind words, however, the real credit belongs to the many traders, like yourself, who have shared their contributions so frequently among the Journal's many pages. I appreciate the effort, and remain thankful for the interest.
- Spydertrader
Quote from keebee57:
I ran the Dry Up Volume scan on the Wealth-Lab web site, but it only gave me DCAI and NGPS. No FORD and no SNHY. They were both in my WatchList. Any idea what I did wrong? Up to this point, the scan has matched your HotList.
Both FORD and SNHY are the two stocks in our "Hotlist" created using the stocktables.com web site and the Hershey Rank Scan. I use the Hotlist to look for stocks to add to the Final Universe List. Since both equities (FORD and SNHY) already reside in your Final Universe List (The Watchlist), you take no further action with respect to FORD and SNHY. However, any stock in the Hotlist not currently in your Final Universe List requires adding that stock to The Final Universe List. By example, if you had FORD SNHY and SOHU in your Hotlist, you would add SOHU to your Final Universe List and then run your Dry Up Scan.
Hope that helped.
- Spydertrader
Quote from Spydertrader:
Over the last year, the vast majority of trades taken have resulted from equities that did not meet the 90 percentile EPS and RS rank at the time they signaled a trade. Although each, at one time, did fall within this percentile, when they triggered a trade signal, they did not. As a result, I arrived at the conclusion that cycles play a more important role in profitability than EPS and RS rank. When the number of equities in our Final Universe nears twenty, I relax the Final Universe entry criteria slightly in order to increase the number of possible trade signals. One could also achieve the same goal by reducing the average daily share volume to 150,000 or by altering the minimum and maximum share price. I chose to alter the EPS and RS settings as Jack had indicated that altering these settings, to achieve a certain number of equities in the initial sort, should not effect profitability.
- Spydertrader
What would you consider an optimal number of stocks in the final universe?
Best Regards
Oddi
2005-08-04, Thursday - Update
This morning, I monitored one list of stocks (2 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."
Dry Up Stocks
DCAI NGPS
Our system generated one possible trade signal from the list of two Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.
Dry Up Stocks Triggering Signal
DCAI
Dry Up Stocks NOT Triggering Signal
NGPS
DCAI did not show price improvement ($24.49) at time of signal generation (10:41 AM). In addition, MACD Histogram showed a negative return (-.1686). Also, The Stochastic Indicator fell below desired levels (26.92). As a result, I took no action with respect to trading DCAI.
Shares of ENER opened lower this morning below my stop price before rebounding higher. As a result, I sold all 1000 shares of ENER receiving a fill price of $26.71 USD. This three day trade yielded a profit of +$810 USD or a 3% gain.
I currently hold no positions.
- Spydertrader
This morning, I monitored one list of stocks (2 total equities): Those equities from our daily Hot List and from our Final Universe List finding themselves "In Dry Up."
Dry Up Stocks
DCAI NGPS
Our system generated one possible trade signal from the list of two Dry Up Stocks when actual volume exceeded calculated "Low Band" Dry Up Volume prior to 11:30 AM.
Dry Up Stocks Triggering Signal
DCAI
Dry Up Stocks NOT Triggering Signal
NGPS
DCAI did not show price improvement ($24.49) at time of signal generation (10:41 AM). In addition, MACD Histogram showed a negative return (-.1686). Also, The Stochastic Indicator fell below desired levels (26.92). As a result, I took no action with respect to trading DCAI.
Shares of ENER opened lower this morning below my stop price before rebounding higher. As a result, I sold all 1000 shares of ENER receiving a fill price of $26.71 USD. This three day trade yielded a profit of +$810 USD or a 3% gain.
I currently hold no positions.
- Spydertrader
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